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Nescafe Final

Nescafe is a major brand of Nestle and the largest player in the global instant coffee market, holding a 42% retail value share. It created the instant coffee category and is the 38th most valuable global brand according to Interbrand. While known for its ease of use and variety of products, Nescafe faces challenges from quality issues, competition from private labels, and changing consumer preferences toward fresher coffee options. The brand is working to engage younger consumers through new marketing campaigns and maintain brand loyalty through corporate social responsibility initiatives.

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527 views12 pages

Nescafe Final

Nescafe is a major brand of Nestle and the largest player in the global instant coffee market, holding a 42% retail value share. It created the instant coffee category and is the 38th most valuable global brand according to Interbrand. While known for its ease of use and variety of products, Nescafe faces challenges from quality issues, competition from private labels, and changing consumer preferences toward fresher coffee options. The brand is working to engage younger consumers through new marketing campaigns and maintain brand loyalty through corporate social responsibility initiatives.

Uploaded by

desi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Brand equity

analysis

Overview

A brand of Nestle
The creator of the instant coffee category
38th Best Global Brand, according to Interbrand 2014
New marketing campaign, REDvolution, targeting younger people
Competitors: Jacobs, Tchibo, private label coffee brands

More people drink Nescafe than any other coffee brand in the
world 5500 cups per second Interbrand, 2014
Sources: Interbrand (2014);

Brand Salience
A major player in the instant
coffee industry
Old logo

New logo

Instant association with


Nestle

The typical Nescafe mug

Brand Performance
Ease of use
Simply add water

Pricing

Different prices for the


different product lines
Coupons and vouchers

Source: Nescafe (n.d.)

Packaging
We needed to make our glass jars
better by design and we are able to
find ways to reduce their weight
while retaining all their positive
qualities. Properly sealed, they
ensure the freshness, taste and
quality of products over a very long
time. (Nescafe Company, 2014)

Brand Imagery
Purchase and usage situations
Nice and easy start of the day

User profiles
High product variety to target
different types of customers

Corporate philanthropy
NESCAFEs initiatives create value across the coffee supply chain,
from farmers, to consumers, to us. Paul Bulcke, Nestle CEO.
Source: Nescafe (n. d.)

Brand Imagery
Corporate Philanthropy

Source: Nescafe (n.d.)

Consumer Feelings
Warmth

Fun and excitement

Consumer Judgements
Quality
Consideration
Superiority
In 2010, there was a recall of 100g jars
of Nescafe Collection Coffee, as they
might have contained small pieces of
glass (Food Standards Agency, 2010).

Customer- Brand Resonance


Behavioural loyalty

Sense of community

Instant coffee has the most consolidated


competitive landscape of all hot drinks, due to
the importance of brand to the consumer
experience. Nestl is the overwhelming leader,
holding a 42% retail value share in 2013.
(Euromonitor, 2014)

Customer- Brand Resonance


Active Engagement
Most engaged age group online 18-34 (Facebook, 2014)

Sources: Nescafe Facebook page (n.d.); Nescafe Twitter page (n.d.)

Strengths

Challenges

A leader in the instant


coffee industry
Strong brand
recognition
Differentiated product
offerings
Responsibility

Quality control
Pricing strategy
High competition from
generic brands
Fresh coffee vs. instant
coffee
Increasing use of
automatics

References
Euromonitor, 2014. Instant Coffee Versatility and Convinience Drive Growth. [online] Eurmonitor.
Available at <https://www.portal.euromonitor.com > [Accessed 09 November 2014].
Interbrand, 2014. Nescafe. [online]. Available at: http://bestglobalbrands.com/2014/nescafe/
[Accessed 11 November 2014].
Food Standards Agency, 2010. Nestl recalls Nescaf Collections range coffee 100g jar due to
possible contamination with small pieces of glass. [online] Food Standards Agency. Available at
<http://tna.europarchive.org/20130513091226/http://www.food.gov.uk/enforcement/alerts/2010/may
/nescafecollectionsrangecoffee> [Accessed 08 November 2014].
Keller, L.R., 2007, Strategic brand management, Upper Saddle River, NJ: Pearson.
Keller, L.R., 2009, Building strong brands in a modern marketing communication environment,
Journal of marketing communication, 15, pp. 139-155.
Nescafe, n.d. [online]. Available at: https://www.nescafe.com [Accessed 9 November 2014-.
Nescafe Facebook Parge, n.d. [online] Available at: www.facebook.com/NESCAFE.UK [Accessed
11 November 2014].
Nescafe Twitter Page, n.d. [online]. Available at: www.twitter.com/NESCAFE [Accessed 10
November 2014].

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